Question 1

The individual amounts in the Accounts Payable Credit column of the purchases journal are posted

Accepted Answer

A)  individually to the Accounts Payable account in the general ledger. 
B)  individually to the accounts payable ledger. 
C)  individually to the Purchases account in the general ledger. 
D)  in total to the accounts payable ledger. 
E)  in total to the accounts receivable ledger. 
A)  individually to the Accounts Payable account in the general ledger. 
B)  individually to the accounts payable ledger. 
C)  individually to the Purchases account in the general ledger. 
D)  in total to the accounts payable ledger. 
E)  in total to the accounts receivable ledger.

Question 2

Classic Accessories, Inc. sold merchandise on account to Hi-View Industries for $2,950. What is the journal entry Classic Accessories will use to record this transaction?

Accepted Answer

A) 
$\begin{array} { l l } 
\text { Account Receivable, Hi-View } & \text { DR } \
\text { Sales } & \text { CR }
\end{array}$ 
B)  
$\begin{array} { l l } 
\text { Cash } & \text { DR } \
\text { Sales } & \text { CR }
\end{array}$ 
C)  
Sales $\quad$ DR
Accounts Receivable, Hi-View $\quad$ CR 
D)  
$\begin{array} { l l } 
\text { Sales } & \text { DR } \
\text { Cash } & \text { CR }
\end{array}$ 
A) 
$\begin{array} { l l } 
\text { Account Receivable, Hi-View } & \text { DR } \
\text { Sales } & \text { CR }
\end{array}$ 
B)  
$\begin{array} { l l } 
\text { Cash } & \text { DR } \
\text { Sales } & \text { CR }
\end{array}$ 
C)  
Sales $\quad$ DR
Accounts Receivable, Hi-View $\quad$ CR 
D)  
$\begin{array} { l l } 
\text { Sales } & \text { DR } \
\text { Cash } & \text { CR }
\end{array}$

Question 3

The seller would record the return of merchandise sold on account in the sales journal.

Accepted Answer

A) True 
 B)False

Question 4

Match the terms below with the correct definitions.
-Title or ownership changes hands when the buyer receives the goods.

Accepted Answer

A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal 
A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal

Question 5

The ledger that provides a separate record of credit customers and their respective balances is:

Accepted Answer

A)  Accounts Ledger 
B)  Accounts Receivable Ledger 
C)  Accounts Payable Ledger 
D)  Customer Ledger 
A)  Accounts Ledger 
B)  Accounts Receivable Ledger 
C)  Accounts Payable Ledger 
D)  Customer Ledger

Question 6

Match the terms below with the correct definitions.
-Account used to record the reduction in sales due to either the physical return of goods or defective goods

Accepted Answer

A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal 
A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal

Question 7

When merchandise previously sold is returned for credit, the journal entry is

Accepted Answer

A)  debit Sales; credit Accounts Receivable. 
B)  debit Sales Returns and Allowances; credit Accounts Payable. 
C)  debit Accounts Receivable; credit Sales Returns and Allowances. 
D)  debit Sales Returns and Allowances; credit Accounts Receivable. 
E)  debit Accounts Receivable; credit Purchases Discounts. 
A)  debit Sales; credit Accounts Receivable. 
B)  debit Sales Returns and Allowances; credit Accounts Payable. 
C)  debit Accounts Receivable; credit Sales Returns and Allowances. 
D)  debit Sales Returns and Allowances; credit Accounts Receivable. 
E)  debit Accounts Receivable; credit Purchases Discounts.

Question 8

When recording sales of goods for cash, debit Accounts Receivable and credit Cash.

Accepted Answer

A) True 
 B)False

Question 9

Match the terms below with the correct definitions.
-Subsidiary ledger that presents the individual accounts of credit customers

Accepted Answer

A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal 
A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal

Question 10

Match the terms below with the correct definitions.
-Business form prepared by the seller

Accepted Answer

A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal 
A) FOB destination 
B) Sales Returns and Allowances 
C) Controlling account 
D) Accounts receivable ledger 
E) Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal

Question 11

If the perpetual inventory system is used, an account called Cost of Goods Sold id included in the general ledger.

Accepted Answer

A) True 
 B)False

Question 12

The spaces in the purchases journal used for the invoice date and terms are intended to make it easier to pay the bill on time.

Accepted Answer

A) True 
 B)False

Question 13

Both wholesalers and retailers are types of merchandising companies.

Accepted Answer

A) True 
 B)False

Question 14

A contra-account that records the company's returns of merchandise purchased from suppliers:

Accepted Answer

A)  Purchases Discounts 
B)  Sales Returns and Allowances 
C)  Freight-In 
D)  Purchases Returns and Allowances 
A)  Purchases Discounts 
B)  Sales Returns and Allowances 
C)  Freight-In 
D)  Purchases Returns and Allowances

Question 15

The total of goods sold on account is normally posted daily from the sales journal to the general ledger.

Accepted Answer

A) True 
 B)False

Question 16

AquaMarine Company uses the perpetual inventory system. It returned some merchandise and received credit memorandum of $18,000. Which of the following journal entries records this transaction?

Accepted Answer

A)  A debit to Merchandise Inventory of $18,000, a credit to Accounts Payable of $18,000 
B)  A debit to Accounts Payable of $18,000, a credit to Merchandise Inventory of $18,000 
C)  A debit to Accounts Payable of $18,000, a credit to Purchase Return and Allowances of $18,000 
D)  A debit to Purchase Return and Allowances of $18,000, a credit to Accounts Payable of $18,000 
A)  A debit to Merchandise Inventory of $18,000, a credit to Accounts Payable of $18,000 
B)  A debit to Accounts Payable of $18,000, a credit to Merchandise Inventory of $18,000 
C)  A debit to Accounts Payable of $18,000, a credit to Purchase Return and Allowances of $18,000 
D)  A debit to Purchase Return and Allowances of $18,000, a credit to Accounts Payable of $18,000

Question 17

Special journals are books of original entry that help simplify the recording process. Which is NOT an example of a special journal?

Accepted Answer

A)  Sales Journal 
B)  General Journal 
C)  Purchase Journal 
D)  Cash Receipts Journal 
E)  Cash Payments Journal 
A)  Sales Journal 
B)  General Journal 
C)  Purchase Journal 
D)  Cash Receipts Journal 
E)  Cash Payments Journal

Question 18

The accounts payable ledger has postings from which of the following sets of journals?

Accepted Answer

A)  Purchases, cash payments, and general 
B)  Purchases, cash receipts, and general 
C)  Purchases and sales 
D)  Cash payments and sales 
E)  Sales and cash payments 
A)  Purchases, cash payments, and general 
B)  Purchases, cash receipts, and general 
C)  Purchases and sales 
D)  Cash payments and sales 
E)  Sales and cash payments

Question 19

Smith Co. keeps a continuous record of their inventories and costs of goods. This is an example of a:

Accepted Answer

A)  Perpetual Inventory System 
B)  Periodic Inventory System 
C)  Continuous Inventory System 
D)  Re-evaluation Inventory System 
A)  Perpetual Inventory System 
B)  Periodic Inventory System 
C)  Continuous Inventory System 
D)  Re-evaluation Inventory System

Question 20

An account used to record transportation charges on incoming merchandise intended for resale:

Accepted Answer

A)  Freight-Out 
B)  Freight-Received 
C)  Freight-In 
D)  Merchandise Freight 
A)  Freight-Out 
B)  Freight-Received 
C)  Freight-In 
D)  Merchandise Freight

The individual amounts in the Accounts Payable Credit column of the purchases journal are posted

Classic Accessories, Inc. sold merchandise on account to Hi-View Industries for $2,950. What is the journal entry Classic Accessories will use to record this transaction?

The seller would record the return of merchandise sold on account in the sales journal.

Match the terms below with the correct definitions. -Title or ownership changes hands when the buyer receives the goods.

The ledger that provides a separate record of credit customers and their respective balances is:

Match the terms below with the correct definitions. -Account used to record the reduction in sales due to either the physical return of goods or defective goods

When merchandise previously sold is returned for credit, the journal entry is

When recording sales of goods for cash, debit Accounts Receivable and credit Cash.

Match the terms below with the correct definitions. -Subsidiary ledger that presents the individual accounts of credit customers

Match the terms below with the correct definitions. -Business form prepared by the seller

If the perpetual inventory system is used, an account called Cost of Goods Sold id included in the general ledger.

The spaces in the purchases journal used for the invoice date and terms are intended to make it easier to pay the bill on time.

Both wholesalers and retailers are types of merchandising companies.

A contra-account that records the company's returns of merchandise purchased from suppliers:

The total of goods sold on account is normally posted daily from the sales journal to the general ledger.

AquaMarine Company uses the perpetual inventory system. It returned some merchandise and received credit memorandum of $18,000. Which of the following journal entries records this transaction?

Special journals are books of original entry that help simplify the recording process. Which is NOT an example of a special journal?

The accounts payable ledger has postings from which of the following sets of journals?

Smith Co. keeps a continuous record of their inventories and costs of goods. This is an example of a:

An account used to record transportation charges on incoming merchandise intended for resale:

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 9: Sales and Purchases

The individual amounts in the Accounts Payable Credit column of the purchases journal are posted

Classic Accessories, Inc. sold merchandise on account to Hi-View Industries for $2,950. What is the journal entry Classic Accessories will use to record this transaction?

The seller would record the return of merchandise sold on account in the sales journal.

Match the terms below with the correct definitions. -Title or ownership changes hands when the buyer receives the goods.

The ledger that provides a separate record of credit customers and their respective balances is:

Match the terms below with the correct definitions. -Account used to record the reduction in sales due to either the physical return of goods or defective goods

When merchandise previously sold is returned for credit, the journal entry is

When recording sales of goods for cash, debit Accounts Receivable and credit Cash.

Match the terms below with the correct definitions. -Subsidiary ledger that presents the individual accounts of credit customers

Match the terms below with the correct definitions. -Business form prepared by the seller

If the perpetual inventory system is used, an account called Cost of Goods Sold id included in the general ledger.

The spaces in the purchases journal used for the invoice date and terms are intended to make it easier to pay the bill on time.

Both wholesalers and retailers are types of merchandising companies.

A contra-account that records the company's returns of merchandise purchased from suppliers:

The total of goods sold on account is normally posted daily from the sales journal to the general ledger.

AquaMarine Company uses the perpetual inventory system. It returned some merchandise and received credit memorandum of $18,000. Which of the following journal entries records this transaction?

Special journals are books of original entry that help simplify the recording process. Which is NOT an example of a special journal?

The accounts payable ledger has postings from which of the following sets of journals?

Smith Co. keeps a continuous record of their inventories and costs of goods. This is an example of a:

An account used to record transportation charges on incoming merchandise intended for resale:

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters